Choiceology with Katy Milkman

Bidder Beware: With Guests Max Bazerman & Glenye Cain Oakford


Listen Later

Have you ever bid in a competitive auction—say, on eBay—and won the item, only to see a similar item for sale elsewhere at a lower price? If so, you may have fallen prey to the winner’s curse.

In this episode of Choiceology with Katy Milkman, we look at bias that can lead people to overpay in auctions and other types of negotiations.

We begin with the story of Havre de Grace. This prize filly had an exceptionally successful career as a racehorse before being auctioned as a broodmare. Expectations were high for the sale because Havre de Grace had such a strong thoroughbred pedigree. But the way the auction proceeded surprised everyone in the room.

Glenye Cain Oakford was at the Fasig-Tipton November Mixed Sale and paints a vivid picture of a dramatic bidding process. She is an award-winning journalist, writer, and videographer based in Lexington, Kentucky. She was the senior bloodstock correspondent at the Daily Racing Form at the time of the auction

Special thanks to Fasig-Tipton for use of the audio clips from the Havre de Grace auction.

Max Bazerman has contributed important research to the study of the winner’s curse. He joins Katy to discuss the ways in which this phenomenon can affect purchasing decisions around everything from jewelry to oil leases—and how the bias can diminish your ability to negotiate successfully. 

Max Bazerman is the Jesse Isidor Straus Professor of Business at the Harvard Business School and the Harvard Kennedy School and the author of many books, including the upcoming book Better, Not Perfect: The Realist’s Guide to Maximum Sustainable Goodness, which will be released later this year by Harper Collins. 

Choiceology is an original podcast from Charles Schwab. For more on the series, visit schwab.com/podcast.

If you enjoy the show, please leave a ⭐⭐⭐⭐⭐ rating or review on Apple Podcasts.

Important Disclosures:

All expressions of opinion are subject to change without notice in reaction to shifting market conditions.

The comments, views, and opinions expressed in the presentation are those of the speakers and do not necessarily represent the views of Charles Schwab.

Data contained herein from third-party providers is obtained from what are considered reliable sources. However, its accuracy, completeness or reliability cannot be guaranteed.

(0520-0BPD)

...more
View all episodesView all episodes
Download on the App Store

Choiceology with Katy MilkmanBy Charles Schwab

  • 4.8
  • 4.8
  • 4.8
  • 4.8
  • 4.8

4.8

1,383 ratings


More shows like Choiceology with Katy Milkman

View all
Freakonomics Radio by Freakonomics Radio + Stitcher

Freakonomics Radio

32,260 Listeners

TED Radio Hour by NPR

TED Radio Hour

22,054 Listeners

Hidden Brain by Hidden Brain, Shankar Vedantam

Hidden Brain

43,409 Listeners

Worklife with Adam Grant by TED

Worklife with Adam Grant

9,187 Listeners

Schwab Market Update Audio by Charles Schwab

Schwab Market Update Audio

316 Listeners

Financial Decoder by Charles Schwab

Financial Decoder

299 Listeners

The Happiness Lab with Dr. Laurie Santos by Pushkin Industries

The Happiness Lab with Dr. Laurie Santos

14,389 Listeners

WashingtonWise by Charles Schwab

WashingtonWise

438 Listeners

The Next Big Idea by Next Big Idea Club

The Next Big Idea

1,272 Listeners

Giving With Impact by DAFgiving360

Giving With Impact

10 Listeners

No Stupid Questions by Freakonomics Radio + Stitcher

No Stupid Questions

3,678 Listeners

People I (Mostly) Admire by Freakonomics Radio + Stitcher

People I (Mostly) Admire

2,136 Listeners

ReThinking by TED

ReThinking

611 Listeners

A Slight Change of Plans by Pushkin Industries

A Slight Change of Plans

2,066 Listeners

The Freakonomics Radio Book Club by Freakonomics Radio + Stitcher

The Freakonomics Radio Book Club

234 Listeners

Freakonomics, M.D. by Freakonomics Radio + Stitcher

Freakonomics, M.D.

1,118 Listeners

The Economics of Everyday Things by Freakonomics Network & Zachary Crockett

The Economics of Everyday Things

1,606 Listeners

What It's Like To Be... by Dan Heath

What It's Like To Be...

658 Listeners

On Investing by Charles Schwab

On Investing

282 Listeners